NO MORATORIUM

Southland Times, Issue 21275, 22 December 1930, Page 6

NO MORATORIUM

DECISION ANNOUNCED

EXPERTS TO DIAGNOSE POSITION-STATEMENT-BY MR RANSOM (Per Uuited Press Association.) Wellington, December-. 20. The Hon. E. A.Ransom, acting-Priffie Minister, to-day issued the following statement covering several important decisions made by the Government: —-“The Government has had under consideration the general position of the country in all its aspects, and, while it recognizes the grave difficulties of the situation due to circumstances and conditions perhaps unprecedenv cd in the history of New Zealand, it .deprecates any attempt to exaggerate the position or to stampede the country into hasty and ill-considered solutions. “'Tn the first place, on two questions that have excited discussion in the Press and at conferences,- and even elicited tentative pronouncements from public men, namelj, the fusion of the political parties, the formation of a National Cabinet and the early summoning of Parliament, Cabinet feels that these are matters that must await the return of the Prime Minister, who is entitled to the dominant voice in their determination so far as his Government and political party are concerned. . “Then in regard to the demand for an immediate assembling of Parliament,.Ministers do not consider this step either necessary or wise at this juncture.

“I have recently announced the view of the Cabinet, and the Prime Minister has definitely declared from- England that a moratorium is undesirable. These views are supported by the State Loan Departments which provide nearly one-half ot the total amount of finance for farmers and who say that there is not at present such a pressure from their clients as would justify the application of a moratorium, even if that kind -_of remedy were desirable which they emphatically deny. “The Government, thinking that, a diagnosis of the condition of each section of industry is necessary, and that it should be carried out in a sane and practical way, has, as a beginning, approved the settingup of a committee of experts in the dairy industry which would determine the extent to which that industry is embarrassed and suggest the form of assistance required. The trouble may be far greater than is realized or much less than the general statements make out. It is recognized to be serious enough owing to the severe fall in the price of dairy produce but the perturbation of many dairy farmers may rather be in anticipation of the effects upon their finance and holdings of the slump in prices than in consequence of extreme financial pressure applied by mortgagees. “The committee suggested to investigate the condition of the dairy industry will consist of men who are intimately acquainted with the position of the dairy farmers in their respective districts. The Department of Agriculture is getting into touch with the men whose names have been suggested. The committee will be asked to meet in Wellington early in the New Year and to carry out their investigations with all despatch. “It is hoped that on the Prime Minister’s return, the actual position, with the Cabinet’s recommendation, will be ready for action. Those in the pastoral industry have made no direct approach to the Government for assistance.

“The Government took the precaution a month ago to consult with the Government directors on the Bank of New Zealand, who advised that, not only was amoratorium undesirable, but unnecessary at present. The Government gathered that, although the banking figures showed the strain on the reserves of all the banks to i be accentuated in cases by the greater financial difficulties of Australia, all possible steps were being taken to maintain the strength of the mercantile firms and station agents to support the land-owners and to assist farmers where they had exercised care and economy in the management of their farms.

“The Government recognizes, as well as do .the heads of the financial institutions and business men, that farmers who overreached themselves in the purchase of estates or in their expenditure and have had difficulty in normal times in meeting their current obligations, will experience extreme hardship, and it is prepared to meet delegations of each branch of industry which should be ready to state its actual and detailed difficulties and its suggestions for the minimum assistance required of the State. “The position of the public finances is appreciated by the Government and has been the subject of the closest scrutiny and consideration. “The revenue has fallen in a much greater ratio than the expenditure, due to the same causes that have affected all branches of industry, and, more especially the primary industries. “The charges on the. Consolidated Fund cannot, within the financial year, be shortened to the extent that will make up the decline in revenue owing to the heavy rigid annual outgoings for interest, pensions, and special permanent items that are the accumulation of a generation of parliamentary and government action in the annual appropriations for the services. “The first overhaul of the departments, made last month at; the earliest available moment after the close of the session, revealed the extreme difficulty in the face of sectional demands by institutions and the public in curtailing, deferring or cancelling the expenditure of items voted by Parliament. The economies proposed in certain departments, such as the Defence and the Working-Railways, will not be materially effective within the financial year.” FARMERS’ - VIEWS OPPOSITION TO MORATORIUM. The question whether the Southland Farmers’ Union should support the establishment of a moratorium came before the meeting of the union on Saturday when the president, Mr Erskine Bowmar, presented a report against such a restriction. In introducing the matter to the meeting the president said that members had expressed an opinion that, in the interest of farmers, the establishment of a moratorium should be investigated. Together with the secretary he had interviewed a number of business people concerned and the information gathered indicated that it would not be in the interest of the farming industry to establish a moratorium. He submitted the following report:— “We cannot recommend its establishment because of its possible detrimental effect on farmers’ finance. “(1) The effects of the last moratorium are only now wearing off after 10 years. “(2) The establishment of another would make it impossible hereafter to raise mortgages on farm lands from private investors and public companies. “(3) That although there may be cases of individual hardship, the union should not take action which would be against the interest of its members as a body.” The report was received without discussion.